The S&P Global Taiwan Manufacturing PMI eased to 53.3 in March 2026 from 55.2 in February, indicating a slower yet still solid improvement in manufacturing conditions. Both output and new orders continued to grow, albeit at more moderate rates, and remained above their long-term averages, supported by robust domestic and external demand—especially for semiconductors and AI-related products. New export orders also posted a firm expansion.
Purchasing activity rose for the fourth consecutive month, and input inventories increased modestly. At the same time, higher raw material and energy costs—linked in part to the conflict in the Middle East—drove the steepest rise in output prices since June 2022. Supplier delivery times lengthened at the fastest rate since May 2022, and employment dipped slightly, marking the first decline in three months.
Despite these cost and supply-chain pressures, manufacturers remained upbeat. Business confidence was broadly unchanged from February’s 21‑month high, underpinned by expectations of sustained strong global demand over the coming year.
